The answer is Network security groups (NSGs) and Azure Firewall. Both services filter traffic between Azure virtual networks by evaluating rules against packets traversing VNet peering or hub-and-spoke topologies, though they operate at different layers: NSGs provide distributed, stateful Layer 3/4 filtering applied to subnets or NICs, while Azure Firewall offers centralized, managed stateful inspection with application (FQDN) and network rules at the perimeter. On the AZ-500 exam, this question tests your understanding of Azure’s native traffic control mechanisms—a common trap is selecting Azure Application Gateway or VPN Gateway, which handle load balancing or encrypted tunnels, not filtering. Remember that NSGs are the default, lightweight filter for inter-VNet traffic, but Azure Firewall is required for advanced logging, threat intelligence, and forced tunneling scenarios. A memory tip: “NSG for quick subnet rules, Firewall for full inspection and logs.”
AZ-500 Secure networking Practice Question
This AZ-500 practice question tests your understanding of secure networking. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
Which TWO services can be used to filter traffic between virtual networks in Azure? (Choose two.)
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Azure Firewall.
Azure Firewall is a managed, cloud-based network security service that can filter both inbound and outbound traffic between virtual networks (VNets) using stateful inspection, application rules, and network rules. It can be deployed in a hub VNet and enforce traffic filtering between spoke VNets via forced tunneling or routing, making it a correct choice for filtering inter-VNet traffic.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✗
Azure Front Door.
Why it's wrong here
Front Door is for HTTP(S) traffic routing and WAF, not VNet-to-VNet filtering.
✗
Azure VPN Gateway.
Why it's wrong here
VPNGateway provides encrypted tunnels, not filtering.
✗
Azure Traffic Manager.
Why it's wrong here
Traffic Manager routes based on DNS, not filtering.
✓
Azure Firewall.
Why this is correct
Azure Firewall can centrally inspect and filter traffic between VNets.
Related concept
Read the scenario before looking for a memorised answer.
✓
Network security groups (NSGs).
Why this is correct
NSGs can filter traffic between VNets if applied to subnets and routed.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse Azure Firewall with Azure VPNGateway or Azure Front Door, mistakenly thinking that any network appliance or load balancer can filter traffic between VNets, when in fact only stateful firewall services (Azure Firewall) and stateless/stateful packet filters (NSGs) are designed for that purpose.
Detailed technical explanation
How to think about this question
Azure Firewall uses a static public IP for outbound SNAT and supports fully qualified domain name (FQDN) filtering for outbound traffic, which is critical for controlling egress traffic between VNets in a hub-and-spoke topology. Network security groups (NSGs) operate at the subnet or NIC level using 5-tuple rules (source/destination IP, port, protocol) and are stateless for inbound traffic but stateful for outbound, making them suitable for basic traffic filtering between VNets when combined with VNet peering. A common real-world scenario is using Azure Firewall to inspect traffic between spoke VNets while NSGs provide micro-segmentation within each VNet.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
TExam Day Tips
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A healthcare organisation deploys an application with a public-facing web tier and a private database tier. The database subnet has no public IP and only accepts connections from the web tier's security group. Questions like this test whether you can design cloud network isolation using VNets/VPCs, subnets, and security group rules.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this AZ-500 question in full detail.
Secure networking — This question tests Secure networking — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Azure Firewall. — Azure Firewall is a managed, cloud-based network security service that can filter both inbound and outbound traffic between virtual networks (VNets) using stateful inspection, application rules, and network rules. It can be deployed in a hub VNet and enforce traffic filtering between spoke VNets via forced tunneling or routing, making it a correct choice for filtering inter-VNet traffic.
What should I do if I get this AZ-500 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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